vray-ex991

Achieved Record Levels of Revenue, Gross Orders and Backlog for Fourth Quarter and Full Year

CLEVELAND, OH March 12, 2018 — ViewRay, Inc. (Nasdaq: VRAY) today announced financial results for the fourth quarter and full year ended December 31, 2017.

“2017 was a pivotal year for ViewRay, during which we received FDA clearance for the MRIdian Linac and generated substantial growth in new orders and backlog, and recognized revenue for six MRIdian Linac systems,” said Chris A. Raanes, president and chief executive officer of ViewRay. “We are well positioned in 2018 to drive continued growth in new orders and installations of our MRIdian Linac System.”

Total revenue for the fiscal fourth quarter ended December 31, 2017 was $19.9 million, compared to $16.1 million for the same period last year. Total revenue for the full year 2017 was $34.0 million, compared to $22.2 million for the full year 2016.

Cost of product revenue was $15.2 million for the fiscal quarter ended December 31, 2017, compared to $17.0 million for the same period last year. Cost of product revenue was $25.5 million for the full year 2017, compared to $23.9 million for the full year 2016.

Total gross profit (loss) for the fiscal quarter ended December 31, 2017 was $4.3 million, compared to $(1.2) million for the same period last year. Total gross profit (loss) for the full year 2017 was $6.3 million, compared to $(3.6) million for the full year 2016.

Total operating expenses for the fiscal quarter ended December 31, 2017 were $17.1 million, compared to $9.3 million for the same period last year. Total operating expenses for the full year 2017 were $54.5 million, compared to $40.5 million for the same period last year.

Net loss for the fiscal quarter ended December 31, 2017 was $(24.6) million, or $(0.38) per share, compared to $(11.0) million, or $(0.25) per share, for the same period last year. Net loss for the full year 2017 was $(72.2) million, or $(1.23) per share, compared to $(50.6) million, or $(1.26) per share, for the full year 2016.

ViewRay had total cash and cash equivalents of $57.4 million at December 31, 2017.

For the full year 2018, ViewRay anticipates total revenue to be in the range of $80 million to $90 million.

ViewRay will hold a conference call on Monday, March 12, 2018 at 8:30 a.m. ET / 5:30 a.m. PT to discuss the results. The dial-in numbers are (844) 277-1426 for domestic callers and (336) 525-7129 for international callers. The conference ID number is 7167178. A live webcast of the conference call will be available on the investor relations page of ViewRay’s corporate website at www.viewray.com.

After the live webcast, a replay of the webcast will remain available online on the investor relations page of ViewRay’s corporate website, www.viewray.com, for 14 days following the call. In addition, a telephonic replay of the call will be available until March 19, 2018. The replay dial-in numbers are (855) 859-2056 for domestic callers and (404) 537-3406 for international callers. Please use the conference ID number 7167178.

ViewRay®, Inc. (Nasdaq: VRAY), designs, manufactures and markets the MRIdian® radiation therapy system. MRIdian is built upon a proprietary high-definition MR imaging system designed from the ground up to address the unique challenges and clinical workflow for advanced radiation oncology. Unlike MR systems used in diagnostic radiology, MRIdian’s high-definition MR was purposely built to deliver high-precision radiation without unnecessary beam distortion, and consequently, help to mitigate skin toxicity and other safety concerns that may otherwise arise when high magnetic fields interact with radiation beams. ViewRay and MRIdian are registered trademarks of ViewRay, Inc.

This press release contains forward-looking statements within the meaning of Section 27A of the Private Securities Litigation Reform Act. Statements in this press release that are not purely historical are forward-looking statements. Such forward-looking statements include, among other things, the rate of new orders, upgrades and installations, ViewRay’s financial guidance for the full year 2018 and ViewRay’s conference call to discuss its fourth quarter and full year 2017 financial results. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the ability to commercialize MRIdian Linac System, demand for ViewRay’s products, the ability to convert backlog into revenue, and the timing of delivery of ViewRay’s products, the timing, results and other uncertainties associated with clinical trials, the ability to raise the additional funding needed to continue to pursue ViewRay’s business and product development plans, the inherent uncertainties associated with developing new products or technologies, competition in the industry in which ViewRay operates and overall market conditions. For a further description of the risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to ViewRay's business in general, see ViewRay's current and future reports filed with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended December 31, 2017. These forward-looking statements are made as of the date of this press release, and ViewRay assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements, except as required by law.

	Three Months Ended December 31,						Year Ended December 31,
	2017			2016			2017			2016
Gross Orders	$	34,125		$	24,270		$	113,585		$	77,050
Backlog	$	203,625		$	133,160		$	203,625		$	133,160

Revenue:
Product	$	19,100		$	15,315		$	30,458		$	20,555
Service		701			691			3,109			1,504
Distribution Rights		119			119			475			178
Total revenue		19,920			16,125			34,042			22,237
Cost of revenue:
Product		15,166			17,028			25,488			23,897
Service		464			264			2,222			1,969
Total cost of revenue		15,630			17,292			27,710			25,866
Gross margin		4,290			(1,167	)		6,332			(3,629	)
Operating expenses:
Research and development		4,928			2,425			14,709			11,442
Selling and marketing		2,959			1,350			8,412			5,601
General and administrative		9,259			5,566			31,375			23,503
Total operating expenses		17,146			9,341			54,496			40,546
Loss from operations		(12,856	)		(10,508	)		(48,164	)		(44,175	)
Interest income		2			—			5			2
Interest expense		(1,875	)		(1,785	)		(7,247	)		(5,951	)
Other (expense) income, net		(9,917	)		1,286			(16,770	)		(512	)
Loss before provision for income taxes	$	(24,646	)	$	(11,007	)	$	(72,176	)	$	(50,636	)
Provision for income taxes		—			—			—			—
Net loss and comprehensive loss	$	(24,646	)	$	(11,007	)	$	(72,176	)	$	(50,636	)
Net loss per share, basic and diluted	$	(0.38	)	$	(0.25	)	$	(1.23	)	$	(1.26	)
Weighted-average common shares used to compute net loss per share attributable to common stockholders, basic and diluted		65,559,744			43,502,692			58,457,868			40,068,307

	December 31, 2017			December 31, 2016
ASSETS
Current assets:
Cash and cash equivalents	$	57,389		$	14,198
Accounts receivable		20,326			4,200
Inventory		19,375			8,082
Deposits on purchased inventory		7,043			2,522
Deferred cost of revenue		13,696			3,909
Prepaid expenses and other current assets		4,862			3,023
Total current assets		122,691			35,934
Property and equipment, net		11,564			11,560
Restricted cash		1,143			1,143
Intangible assets, net		78			97
Other assets		235			30
TOTAL ASSETS	$	135,711		$	48,764
LIABILITIES AND STOCKHOLDERS EQUITY (DEFICIT)
Current liabilities:
Accounts payable	$	11,014		$	4,980
Accrued liabilities		7,207			6,334
Customer deposits		17,820			19,400
Deferred revenue, current portion		20,151			6,515
Total current liabilities		56,192			37,229
Deferred revenue, net of current portion		3,238			3,918
Long-term debt		44,504			44,290
Warrant liability		22,420			2,723
Other long-term liabilities		7,370			4,257
TOTAL LIABILITIES		133,724			92,417
Commitments and contingencies
Stockholders’ equity (deficit):
Convertible Preferred stock, par value $0.01 per share; 10,000,000 shares authorized at December 31, 2017 and December 31, 2016; no shares issued and outstanding at December 31, 2017 and December 31, 2016		—			—
Common stock, par value of $0.01 per share; 300,000,000 shares authorized at December 31, 2017 and December 31, 2016; 67,653,974 and 43,581,184 shares issued and outstanding at December 31, 2017 and December 31, 2016		666			426
Additional paid-in capital		321,174			203,598
Accumulated deficit		(319,853	)		(247,677	)
TOTAL STOCKHOLDERS’ EQUITY (DEFICIT)		1,987			(43,653	)
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT	$	135,711		$	48,764

Investor Relations:	Media Enquiries:
Ajay Bansal	Michael Saracen
Chief Financial Officer	Vice President, Marketing
1-844-MRIdian (674-3426)	Phone: +1 408-242-2994
	Email: media@viewray.com